A little oasis of calm for currencies

From FT: In the depths of the mid-1970s recession, a swathe of US banks was left out of pocket when Herstatt Bank, a privately owned German operation, was put into liquidation by German regulators.

The Americans had handed over dollars to Herstatt earlier that day as one leg of routine foreign exchange transactions; they fully expected deutschemarks in return a matter of hours later. …. Full Article: Source